The layoffs come roughly one-and-a-half months after Vineet Rao stepped down as Dealshare’s chief executive. The company had earlier decided to shift its headquarters North, which is where most of its business comes from.
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In a statement, a Dealshare spokesperson said the company was re-aligning its budgets and reorganising its teams and locations as part of a focus on the B2C business, without revealing details on the number of employees impacted.
“Our immediate priorities will be to quickly organise the teams towards execution, complete the non-tech teams’ transition to Gurgaon, prioritise key deliverables and swing into action. As a result of this reorganisation, some of our colleagues will be leaving us. The company will do everything in our capacity to support them through this transition both financially and (by) leveraging our networks to provide for a soft landing,” the spokesperson added.
Most of the employees impacted are from the B2B business, a person in the know told ET. The retrenched also include some people who have chosen not to move to the new headquarters in Gurgaon. The B2B arm brought in between 20% to 30% of Dealshare’s total revenues. Before the layoffs, the firm had about 1,000 to 1,100 people on its rolls.
Moneycontrol was the first to report the latest round of layoffs at Dealshare and the closure of the company’s B2B business.
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In August, The Arc reported that the company’s investors had ringfenced a large part of the $150 million it still had in the bank. The management reportedly only had access to a limited pool of about $30 million.The move by the investors underscored the long-running troubles at the firm. In January, ET had reported that Dealshare was laying off around 100 employees, or over 6% of its then 1,500-strong workforce. Since then, the company has scaled down operations significantly.
Dealshare has raised $393 million so far from investors such as WestBridge Capital, Matrix Partners, Alpha Wave Global and others. In an interaction with ET in July, cofounder Sourjyendu Medda had said that Dealshare had brought down its monthly cash burn to $2 million from $11 million earlier, and had about $150 million in the bank. He added that this year, Dealshare expects to record gross merchandise value equal to or slightly lower than last financial year’s $500-550 million.
The company is operational in about 100 towns, with a third of its business coming from the National Capital Region (NCR), and Rajasthan accounting for another 33%.
